The American food giant Kraft Heinz has announced it will divest its North America coffee business to the private equity firm One Rock Capital Partners.

The transaction values the coffee business, which includes brands such as Ethical Bean, Maxwell House, Tassimo and Yuban, at $650 million.

Under the terms of the deal, Kraft Heinz will retain a 30 per cent non-controlling equity state in the coffee business. After taxes, the company expects to retain $500 million which it will use to pay down debt.

The transaction will include the North American coffee business’s assets, brand and resources including its coffee manufacturing sites in Jacksonville, Florida and Vancouver, British Columbia.

At present, the business employs approximately 250 full-time workers.

Subject to regulatory approval, the divestiture is expected to close in mid-2027.

Steve Cahillane, chief executive of Kraft Heinz, said: “This transaction is a meaningful step in unlocking value from our portfolio and will further accelerate the momentum behind our transformation.

“We are proud of the role these brands have played in the lives of generations of coffee drinkers, and our continued stake reflects the confidence we have in their long-term potential under One Rock's focused ownership.”

In June, Kraft Heinz announced a new operating structure to accelerate growth. Under the restructure, its Asia, West and East emerging markets region were merged into a single emerging market region led by a new regional president for emerging markets.

One Rock already owns a stake in other businesses in the food and drinks space, such as Primo Brands, the owner of water bands such as Deer Park, Poland Spring and Zephyrhills.

Kraft Heinz is one of several US foods giants seeking to divest aspects of their wider portfolio. Unilever is exiting food altogether with the $44.8 billion merger of its food business with McCormick.

Nestlé has also announced it will sell its vitamins, minerals and supplements business Holistic Health to the private equity firm Yellow Wood Partners for $1 billion.

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